$100 Million awarded Since 1994 6,000 Satisfied Clients

Posted On June 26, 2024 Consumer Privacy & Data Breaches

CDK Global Cyberattack: Business Interruption Claims

In June 2024, CDK Global, a major software provider for the automotive retail industry, fell victim to two significant cyberattacks. These incidents forced the company to shut down its systems, leaving over 15,000 car dealerships unable to process transactions and resulting in substantial revenue losses. As the situation continues to unfold, many auto retailers are left wondering about their rights and potential recourse.

At Console & Associates, P.C., we’re committed to helping businesses understand their legal options in the wake of such disruptive events. If your dealership has been impacted by the CDK Global cyberattack, it’s crucial to be informed about your potential rights and avenues for compensation. Complete our online form to contact our CDK Global business interruption lawyers for a free case evaluation.

The CDK Global Cyberattack: What We Know

On June 18, 2024, CDK Global detected a breach in its systems, prompting an immediate shutdown of its data centers and IT infrastructure. As the company attempted to restore operations on June 19, a second cybersecurity incident forced another shutdown. CDK Global later confirmed that these incidents were ransomware attacks, with hackers demanding a substantial sum to release the compromised information.

While CDK Global initially projected a swift resolution, the company has since indicated that full system restoration may take longer than anticipated. This prolonged downtime has had far-reaching consequences for the thousands of auto retailers relying on CDK’s software for their daily operations.

Impact on Auto Retailers

The cyberattack on CDK Global has significantly disrupted the automotive retail industry in several ways:

  1. Operational Paralysis: Many dealerships have been unable to access critical software necessary for managing sales, inventory, and customer interactions.
  2. Revenue Loss: The inability to process transactions has led to a sharp decline in vehicle sales and service appointments.
  3. Additional Expenses: Some retailers have incurred extra costs in attempts to mitigate the impact, such as implementing temporary solutions or hiring IT specialists.
  4. Customer Relations: The disruption has potentially damaged relationships with customers who were unable to complete purchases or receive services.

Understanding Your Rights

As an auto retailer affected by the CDK Global cyberattack, you may have grounds for a business interruption claim. While CDK Global was not directly responsible for the cyberattack, courts have previously held that businesses should anticipate and address certain risks, including those related to cybersecurity.

Software vendors often have a contractual obligation to ensure consistent and reliable delivery of their products and services. The extended downtime resulting from the cyberattack may constitute a breach of this obligation, potentially entitling affected parties to compensation for lost revenue and additional expenses incurred.

How Console & Associates, P.C. Can Help

Our team at Console & Associates, P.C. is dedicated to assisting businesses affected by data breaches and cyberattacks. We can help you:

  1. Evaluate Your Case: We’ll review your specific situation to determine if you have grounds for a business interruption claim.
  2. Understand Your Options: We’ll explain the potential legal avenues available to you, including individual claims or participation in larger legal actions.

Next Steps for Affected Auto Retailers

If your dealership has been impacted by the CDK Global cyberattack, we recommend taking the following steps:

  1. Document Everything: Keep detailed records of all losses and additional expenses incurred due to the system outage.
  2. Review Your Contract: Examine your agreement with CDK Global to understand the terms regarding service interruptions and potential compensation.
  3. Communicate with Customers: Keep your customers informed about the situation and any delays in service.
  4. Seek Legal Advice: Consider consulting with a CDK Global business interruption lawyer experienced in business interruption claims to understand your rights and options.

At Console & Associates, P.C., we’re committed to helping businesses navigate the complex legal landscape following cybersecurity incidents. While we can’t guarantee specific outcomes, we strive to provide knowledgeable guidance and robust representation for our clients.

If you’ve been affected by the CDK Global cyberattack and want to learn more about your potential legal options, we encourage you to reach out to our team by completing our online form. We’re here to listen, provide information, and help you make informed decisions about how to proceed. Remember, understanding your rights is the first step towards protecting your business in the aftermath of this significant disruption. Don’t hesitate to seek the information and support you need during this challenging time.